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TGC-1: IAS 2007 report. - July 28, 2008
Filed Under Uncategorized |
We have corrected TGC-1’s model, in accordance to company’s 2007 IAS report.
The established report is the first one, which shows the results of TGC-1’s reorganization in full volume. It reflects the merger of TGC-1 and Murmansk HPP and the results of additional emission placements, in order to attract investments.
TGC-1’s sales increased by +29.3%, to 1,105 mn USD vs 2006 results. Company’s CapEx increased by +29.8% and formed 1,103.9 mn USD. As a result, EBITDA margin of TGC-1, excluding paper income such as restore and allowance of reserves reversing under devaluation of basic assets, formed 7.4% against 6.7% in 2006.
A significant influence on company’s operating activity has: a growth of gas prices, regulated and free tariffs on electricity, market liberalization value and buy/sell activity at the wholesale market.
We have reviewed target price of TGC-1’s stocks, taking into account new financial results of the company, corrections of forecasted fuel and electricity prices, which have been changed since our previous TGC report. Our estimated target price of TGC-1’s securities formed 0.0020 USD per share vs previous 0.0017 USD per share. We confirm our “BUY” recommendation on TGC-1’s stocks. The shares of TGC-1 can be supported by offering of TGC-1’s subsidiaries, which will be provided by Gazprom, when it consolidates purchased shares of TGC-1 in full volume. In this case, Gazprom’s share in Wholesale Generating Company will overgrow 30% and it will have to provide public offering under the price, which is not lower than the purchased price of government share and additional emission, i.e. 0.0015 USD per share.
TGC-1: IAS 2007 report. - July 28, 2008 (PDF)